Answered step by step
Verified Expert Solution
Question
1 Approved Answer
part 1 and 2 help!! Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
part 1 and 2 help!! Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the spilt-off point total $380,000 per quarter. For financial reporting purposes, the company allocates these costs to the Joint products on the basis of their relative sales value at the spilt-off point. Unit selling prices and total output at the split-off point are as follows: Product A B C falling Price $27.00 per pound $ 20.00 per pound $ 32.00 per gallon Quarterly Output 10,200 pounds 22,100 pounds 5,400 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: product Adactional Processing coate $ 86,690 $125.095 $ 57,700 selling Price $31.70 per pound $26.70 per pound $40.70 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages as a negative value.) Product Product Product C Financial advantage (disadvantage of further processing
part 1 and 2 help!!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started